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Well, here is the main problem. The menu bar is being generated by a php program that is part of our shopping cart, so the php is generating the code for the menu bar.
But I would love it to look like the picture I just attached. I can mess with it more to get the coloring right, etc. but need it to look like this somewhat.

Fredda...is there a way to take the css I have now and modify it to work? I like the fact that it will show you what menu section you are on and I need to be able to control the levels. For example on the Dog Beds By Brands, I would like the background of this to be different so that it appears to be like a header, then the subs of that be indented with bullets, etc.
The css you gave works, but it doesnt seem to be able to allow me to modify it on the sub levels independanty.

The css I gave you was just a starting point for you to play with . Look at your exisiting code and the code I gave you.. try out the different bits and see how it looks.
A little tip:
To target the first level list item you can use

I see the code you gave me, but on mine it refers to #nav_vert and yours refers to .vertical-nav.
Since I am very new to CSS, It's kind of hard for me to follow the logic at times. Do you think it would be better to start with your code and expand or use what I have and edit?
My goal for the menu bar is to be able to have a different background for level 1, be able to have a bullet and indented for level 2, and to have the currently selected level with a different background (or whatever) to let the customer know where they are at on the menu bar.

Oh..and to only allow these changes on the menu bar and not effect all the other li or <a> ,etc.